Gold prices edge lower as US inflation data reinforces Fed outlook
GLD•Spot gold fell 0.4% to $4,006.06 an ounce, while December US gold futures declined 0.3% to $4,018.50. Traders priced in about a 75% chance of a Federal Reserve rate hike in December after US inflation accelerated in September.
1. Gold slips on rate outlook
Gold prices eased in early Asian trade on Friday after falling more than 1% in the previous session, as stubborn US inflation reinforced expectations of further Federal Reserve rate hikes. Spot gold was down 0.4% at $4,006.06 per ounce by 0036 GMT, and December US gold futures dropped 0.3% to $4,018.50.
2. Inflation supports hike bets
US inflation accelerated in September as consumers paid more for gasoline and other goods. Traders were pricing in about a 75% chance of a rate hike in December; higher rates raise the opportunity cost of holding non-yielding bullion. Gold was headed for a modest weekly gain but remained on track for a second consecutive monthly decline.
